CHICAGO, IL - Chicago-based Redwood Capital Group, a vertically integrated national real estate investment manager, in a joint venture with an affiliate of Heitman LLC (Heitman), a global real estate investment management firm, recently acquired the 375-unit Reserve Eden Prairie in Eden Prairie, Minn., just outside Minneapolis. Redwood Capital Group’s fully integrated property management company, Redwood Residential, will manage the property.
Formerly called ReNew Eden Prairie, the garden-style property is located at 13905 Chestnut Drive and comprises five three-story residential buildings. Reserve Eden Prairie features one-, two- and three-bedroom layouts with an average size of 956 square feet.
“Acquiring value-add properties in prime locations has been part of a two-prong strategy to our success and growth, which means Reserve Eden Prairie aligns perfectly with Redwood’s commitment to extend into engaging markets and strengthen our national portfolio of high-quality multifamily assets,” said Bill McDougall, managing director, investments, and head of acquisitions at Redwood Capital Group. “The improvements we have planned will make this already stellar property even more attractive to the increasing demographic of residents in this area in need of quality, updated rental housing.”
Amenities at Reserve Eden Prairie include a standalone two-story clubhouse; one indoor and two outdoor swimming pools; a business center; lounge with billiards; playground; dog park; and package pick-up room. The modern, 24-hour fitness center includes a CrossFit gym, indoor basketball court, racquetball court, sauna and spa.
Through its in-house construction division, Redwood Capital Group will project manage multiple exterior, structural, mechanical and amenity improvements to the property in keeping with its value-add strategy. These renovations will include modernizing the clubhouse, updating the fitness center, building a new dog park, and more. In addition, all units will be renewed with a higher level of finish, including granite or quartz countertops, stainless steel appliances and vinyl plank flooring.
“Based on market research and the pure demand we are seeing from renters, all indicators point to a continued strong apartment market in highly desirable suburbs like Eden Prairie – and we don’t expect that to change anytime soon,” said David Carlson, managing partner and co-founder of Redwood Capital Group. “With our focus on suburban value-add and core-plus properties, coupled with our in-house Redwood Residential property management arm and our history of working in the area, we definitely bring some unique investment and management capabilities that will help this property stand out in the Minneapolis submarket.”
No stranger to the Minneapolis suburbs, Redwood Capital Group has owned over 2,200 units in the Minneapolis market in the past decade. The firm’s most recent investment was the 534-unit Hampshire Hill property in Bloomington, which Redwood Capital Group successfully exited from in January of this year.
Founded in 2017, Redwood Residential is a leading-edge property management platform with a diverse national portfolio that cultivates thriving, hospitality-inspired communities. With the addition of Reserve Eden Prairie, Redwood Residential now manages nearly 6,000 units across the United States.
Built in 1986, Reserve Eden Prairie is surrounded by nature trails, excellent schools and popular retail options, including the nearby Mall of America. Located off Highway 212 and I-494, the property offers convenient access to the booming job markets of the I-494 corridor, Opus Park, the Golden Triangle and downtown Minneapolis. Additionally, the Green Line light rail extension is scheduled to be completed in 2024, connecting Eden Prairie to downtown Minneapolis.
In alignment with its broader ESG initiatives, Redwood Capital Group has partnered with the National Forest Foundation, committing to a series of tree plantings at the close of every acquisition. Following the transaction for Reserve Eden Prairie, Redwood Capital Group will sponsor the planting of approximately 500 trees.